NMDC Explores Coal Assets in Canada to Support India’s Steel Expansion

India’s state-owned mining major NMDC has begun actively exploring coal assets in Canada as part of a broader strategy to secure critical raw materials needed for the country’s expanding steel industry. The move reflects India’s growing focus on ensuring long-term resource security as steel production capacity is scaled up to meet rising infrastructure and manufacturing demand.

According to official statements, the exploration efforts are aimed primarily at coking coal, a key input for steelmaking that India continues to import in large quantities. By identifying and potentially acquiring overseas coal assets, NMDC is seeking to reduce exposure to supply disruptions and price volatility in global markets.

The development follows high-level discussions between Indian and Canadian authorities on strengthening cooperation in critical minerals, clean mobility, advanced manufacturing and sustainable industrial development. Canada is considered a strategically important partner due to its rich mineral reserves, stable regulatory environment and strong mining expertise.

India’s steel sector is at the centre of the country’s industrial growth plans, supported by increased public infrastructure spending and rising private investment. As capacity additions accelerate, access to reliable supplies of raw materials such as coking coal, lithium, cobalt and rare earth elements has become a priority for policymakers and state-owned enterprises alike.

NMDC’s overseas exploration strategy is aligned with this broader national objective. While the company has traditionally focused on iron ore mining within India, international diversification is increasingly seen as essential to support downstream industries and reduce dependence on imports.

Industry analysts note that securing overseas coal assets could also help Indian steelmakers improve cost competitiveness over the long term. Stable supply arrangements can cushion producers from global price swings, while also supporting planning for future capacity expansion.

The exploration initiative comes at a time when India is also balancing its energy transition goals. While the country is investing heavily in renewable energy and cleaner technologies, coal continues to play a critical role in steel production, where viable large-scale alternatives remain limited.

Any potential investments or acquisitions in Canada would be evaluated carefully, taking into account commercial viability, regulatory approvals and long-term strategic fit. NMDC has indicated that it will pursue opportunities that align with India’s resource security goals and sustainable development priorities.

As India works towards becoming a global steel manufacturing hub, moves such as NMDC’s overseas coal exploration underscore the importance of securing dependable raw material supply chains to support sustained industrial growth.